Cement companies likely to invest for mt tonnes capacity
Cement

Cement companies likely to invest for mt tonnes capacity

Between FY 2023 and 2027, cement industries are anticipated to go on an expansion binge and add 145-155 MT of capacity. On a high base, that amounts to a compound annual growth rate of 4%–5%. According to a note from Crisil, a strong 6-7% CAGR in demand is anticipated over these five fiscal years, which will promote supply development.

Large producers are currently concentrating on organic growth due to the robust demand outlook and acquisition of the majority of the smaller and financially weaker enterprises. Throughout the medium term, the top 5 will be responsible for the majority of incremental capacity expansion.

Strong profitability and a good post-pandemic demand rebound helped producers reduce their debt on the balance sheet. The pandemic forced the suspension or postponement of capex plans, which were resumed in the second half of fiscal 2021.

However, the agency anticipates that the capacity addition drive would slow down in fiscal 2023 and stabilise at 30-32 MT, including integrated and grinding units, since increased input costs have hurt their profitability and caused capex to decrease.

Moreover, fiscal 2024 appears unimpressive with only a 30-32 MT addition. That's because general elections could result in changes to policies.

Between FY 2023 and 2027, cement industries are anticipated to go on an expansion binge and add 145-155 MT of capacity. On a high base, that amounts to a compound annual growth rate of 4%–5%. According to a note from Crisil, a strong 6-7% CAGR in demand is anticipated over these five fiscal years, which will promote supply development. Large producers are currently concentrating on organic growth due to the robust demand outlook and acquisition of the majority of the smaller and financially weaker enterprises. Throughout the medium term, the top 5 will be responsible for the majority of incremental capacity expansion. Strong profitability and a good post-pandemic demand rebound helped producers reduce their debt on the balance sheet. The pandemic forced the suspension or postponement of capex plans, which were resumed in the second half of fiscal 2021. However, the agency anticipates that the capacity addition drive would slow down in fiscal 2023 and stabilise at 30-32 MT, including integrated and grinding units, since increased input costs have hurt their profitability and caused capex to decrease. Moreover, fiscal 2024 appears unimpressive with only a 30-32 MT addition. That's because general elections could result in changes to policies.

Next Story
Infrastructure Transport

Buying a TBM?

Tunnel-boring machines (TBMs) are increasingly being used in India for metro, rail and other infrastructure projects. Choosing the right TBM is vital to work efficiently, speedily and safely. Here’s a guide on how to make the right choice.Geological compatibilityTBMs are specifically designed and customised to suit the unique geological and geotechnical conditions of the area where tunnelling will take place. So, an extensive and thorough geotechnical investigation is conducted prior to the machine’s design and fabrication. “The tunnelling company accurately compiles soil sampling f..

Next Story
Real Estate

Kitchen Dynamics

Modular kitchen design trends lean towards sustainability, smart technology integration, minimalist aesthetics and multifunctional spaces, says Rajkumar Kumawat, Founder and Principal Architect, Rajkumar Architects.Noticeable designs“A shift towards warm minimalism, where clean lines are balanced with tactile finishes such as fluted wood, brushed metals and muted stone surfaces, is a noticeable trend,” says Harkaran Singh Boparai, Founder and Principal Architect, Harkaran Boparai Studio. “Also, matte lacquers in deep, earthy tones are replacing gloss finishes, bringing a s..

Next Story
Real Estate

Redevelopment Rush

Mumbai is on the cusp of an urban transformation, driven by the pressing need to replace ageing, unsafe buildings with modern, high-density developments. The scale and pace of redevelopment across the city is unprecedented – and yet fraught with complexity.Redevelopment has become a defining strategy for urban renewal in Mumbai. One of the most challenging aspects is the displacement it entails – residents are often required to vacate their homes and live in transit accommodations until the new structures are ready. This raises valid concerns: Will the transit housing meet our needs? Will ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?